ART CASHIN: We Are On The Verge Of A Major Currency War

The world's central banks —including the Federal Reserve, the
European Central Bank, The Bank
of England, and the Bank of Japan — have all pursued easy
monetary policies in their efforts to stimulate their local
economies.

Two months ago, BI's Joe Weisenthal said that all of these
actions would lead to more talk about currency
wars.

Recently, Japan
announced that they would be holding new elections. And
the consensus believes that the new leadership will pursue ultra
aggressive monetary policy in the for of unlimited quantitative
easing.

“What troubles me in that area is the call for elections in
Japan, and the fact that Mr. Abe, who had been Prime Minister,
may come back. He has called for unlimited monetary easing
from the Bank of Japan and the Ministry of Finance.

It sounds to me like we are on the verge of a major currency war,
under the guise of monetary policy. He specifically said,
‘I want to see the rate of inflation go above 3%.’ Now I’m
sure they are bright enough not to get into something like
Germany in the Weimar Republic. But we’ve got central banks
all around the world beginning to play with fire.”

In the interview, Cashin also shares his thoughts on gold and the
escalating conflict in the Gaza strip.